U.K. Home Price Rise Fastest Since '02

U.K. house prices increased in February at the fastest pace in more than seven years, according to Acadametrics Ltd.

The average cost of a home in England and Wales was $334,033, up 1.9% from January, in the biggest advance since September 2002, Acadametrics founder David Thorpe said in an interview. Values are still 4% below the February 2008 peak, the group said in a report released Friday.

However, the measurement is at odds with other housing data that shows values fell last month, and it is likely to be revised down, Thorpe said. Some property market indicators show Britain's housing recovery lost momentum this year after the general election, an increase in the transaction tax and colder-than-average winter weather deterred buyers.

"The numbers at the moment are very volatile because of low transactions," Thorpe said. "When more transactions come through, we would expect this 1.9% to drop."